Protecting Yourself when Debt Collectors Call
Most people avoid the phone, and pretend they are not the person the collection agent is calling on, just to put off the inevitable – paying their past due account balance. I have been one of those people. It wasn’t until I actually became a debt collector, that I realized I was actually in control of the situation when a collection agent called.
A lot of people are also unaware that debt collectors receive bonuses or commissions on the money they collect. This is why so many debt collectors are relentless and pushy. They stand to gain a considerable amount because you paid your past due account. Some don’t even offer you the option of a payment plan, even if one is available on your account, because sometimes commissions are only paid out on collecting lump sums and settlements.
A settlement on a debt may not always be available, but is an option most of the time. A settlement means that you could pay a percentage of total amounts owed versus the full amount. Settlements range in percentages accepted by the company you actually owe the money to, not the collection agency. Some credit card companies, for example, will accept as low as 60 percent of total amount owed.
Check into payment plans. A payment plan can allow you to pay a monthly installment rather than having to come up with the total balance. Payment plans aren’t always offered or available, but it’s worth checking into to restore your credit and get the collection calls stopped.
Interest accrues on past due bills, even if the services are no longer in use. The sooner you can get it paid, the better. Interest rates don’t just apply to lines of credit, even bills like utilities and medical bills are subject to interest being tacked on the balance.
Keep in mind when being called is that there are laws that dictate times of day you can be called, what numbers they can call, and how debt collectors can talk to you. Federal law governs the practice of debt collection, not state-by-state laws.
The Fair Debt Collection Practices Act (FDCPA) protects you against harassment and abuse. Debt collectors cannot bully you into paying a debt by making threats or calling you repetitively over the course of a 24-hour period.
Time
A debt collection agency cannot call you before 8am, or after 9pm, your time. It doesn’t matter what time it is where the collection call is coming from.
Bullying
At no time can a collection agent make threats they cannot carry out to just get you to pay. This includes threats of garnishing your wages and putting liens on your property. In order to do any of that, the agency would either have to hire an attorney to represent you, or turn your account over to a law firm. Most collection agencies have no legal staff, and if your account is turned over to a law firm, the agency cannot call you anymore.
Repetitive calling
You cannot be called repeatedly at the same number within a 24-hour time period. You can, however, be called once per phone number on file. This means if a collection agency has your work and home number they can call both numbers only once in a 24-hour period.
Bankruptcy
If you absolutely have to file bankruptcy on debts, collection agencies must be notified that you have done so. This protects you from calls and letters concerning your debts. Your attorney will now be fielding these calls on your behalf, and you are no longer required to take calls or answer mail concerning any debts filed under a bankruptcy. Make sure all debts you are being called about are filed under your bankruptcy, because if any are not, you are liable to answer to those not covered.
The best way to notify a collection agency of a bankruptcy is to send a certified letter. Certified mail requires a signature, that way the agency cannot come back later and say they did not receive notification. If you have filed bankruptcy, your attorney is usually who would send the notifications out.
Even if the collection agency turns your debt account over to a law firm to have a suit filed, keep in mind there is no such thing as debtor’s prison, thus a judgment against you can still be worked out into a payment plan or a settlement. A judgment can however mean your property such as a home or land can have a lien put on it until the debt is paid. A lien does not allow anyone to take your property, it will just hinder your ability to sell the home or land until the debt is paid in full.
Understanding your rights and the federal laws governing debt collecting is a must. Take the time to read the Fair Debt Collection Practices Act. Keep accurate notes on debt collector names, what agency they are calling from, and how many times you are called on your debts. Also, keep track of times of day or evening you receive calls. If you have to seek legal aide due to FDCPA violations, an attorney will need this information.
Keeping yourself informed will ensure you do not fall victim to harassment or abuse by debt collectors.
